A local distributor for a national tire company expects to sell approximately 9,240 tires of a certain size and tread design next year.Annual carrying cost is $18 per tire and ordering cost is $84. The distributor operates 286 days a year.a. What is the EOQ? (Round your answer to a whole number.)1:00b. How many times per year does the store reorder? (Round your answer to two decimal points.)Number of Ondors per Yearc. What is the length of an order cycle? (Round your answer to two decimal points.)Length of Order Cycled. What will the total annual carrying and ordering cost be if the EOQ quantity is ordered? (Round your answer to a whole number.)Total Annual Inventory Cost

Step 1: Calculate the EOQThe EOQ formula is given by:\[ \text{EOQ} = \sqrt{\frac{2DS}{H}} \]where:-…

Answered: A local distributor for a national tire…

Understanding Business

12th Edition

ISBN:9781259929434

Author:William Nickels

Publisher:William Nickels

Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment

Section: Chapter Questions

Problem 1CE

See similar textbooks

Similar questions

A local distributor for a national tire company expects to sell approximately 8,660 tires of a certain size and tread design next year. Annual carrying cost is $15 per tire and ordering cost is $67. The distributor operates 283 days a year. a. What is the EOQ? (Round your answer to a whole number.) EOQ b. How many times per year does the store reorder? (Round your answer to two decimal points.) Number of Orders per Year c. What is the length of an order cycle? (Round your answer to two decimal points.) Length of Order Cycle d. What will the total annual carrying and ordering cost be if the EOQ quantity is ordered? (Round your answer to a whole number.) Total Annual Inventory Cost Novt
The company uses cooking oil in its business. The usage of cooking oil is normally distributed with an average of 30 gallons per week and a standard deviation of four gallons per week. The manager asked you to help him decide how to reorder cooking oil in order to achieve a service level of 97.5 percent . Lead time is nine days. a) If cooking oil can be ordered as needed, what reorder point should be used? Answer in 2 decimal places.b) If a fixed interval of 20 days is specified, how much safety stock should the company carry. Answer in 2 decimal places.
Thompson Paint Company uses 60,000 gallons of pigment per year. The cost of ordering pigment is $200 per order, and the cost of carrying the pigment in inventory is $1 per gallon per year. The firm uses pigment at a constant rate every day throughout the year. a. Calculate the EOQ. b. If it takes 20 days to receive an order once it has been placed, determine the reorder point in terms of gallons of pigment. (Note: Use a 365-day year.)
20. A large law firm uses a constant 50 reams of copier paper per day. The lead timefor the paper is approximately normal, averages 9 days, and has a standard deviationof 3 days. What reorder point provides a service level of 90%?
Weekly Average Demand 110 Standard deviation of (weekly) demand 30 Setup cost ($) 1400 Lead time (in weeks) 2 Procurement cost ($) 200 Holding cost /unit/week ($) 3 You are given the demand and inventory related information about a grocery store’s product in the table. The store is open for 46 weeks in a year. What is the reorder point if it wants to achieve a service level of 97%? (Do not round your intermediate calculations. Round your final answers to the nearest whole number.
Please do not give solution in image format thanku
Please do not give solution in image format thanku Prince Electronics, a manufacturer of consumer electronic goods, has five distribution centers in different regions of the country. For one of its products, a highspeed modem priced at $360 per unit, the average weekly demand at each distribution center is 85 units. Average shipment size to each distribution center is 450 units, and average lead time for delivery is 2 weeks. Each distribution center carries 2 weeks' supply as safety stock but holds no anticipation inventory. Part 2 a. On average, how many dollars of pipeline inventory will be in transit to each distribution center? $enter your response here. (Enter your response as an integer.)
Given Information Service Level - 95% (z value= 1.6649) Order Cost - $125Order Cycle (weeks) - 4, 5, 6, 7, 8Lead Time (weeks) - 2 weeksOperating Time - 52 weeks Standard deviation = 69.3237 Variable Holding Cost - 12.019% Fixed Holding Cost - 1,659,317.307 QUESTION: Compute for annual variable holding cost. Formula Given: (EOQ/2) x (Unit cost x Percentage Value of Inventory)
Give typed full explanation If a purchase discount is taken: I. there is a saving in purchase cost. II. ordering costs are reduced. III. carrying costs are increased. IV. there is not necessarily a net saving.
Consider the following data: Annual Usage in units -- 62,500; Working days per year -- 360; Cost to Carry -- P 5; Cost to Order -- P 2.50; Reorder Point -- 120. 1.What is the average inventory?2. How much is the total ordering cost?3. How much is the total cost to order and cost to carry
The National Company uses 150,000 gallons of hydrochloric acid per month. The cost of carrying the chemical in inventory is 50 cents per gallon per year, and the cost of ordering the chemical is P150 per order. The firm uses the chemical at a constant rate throughout the year. It takes 18 days to receive an order once it is placed. The reorder point is (Operating days is 360/year)
Please do not give solution in image formate thanku.

SEE MORE QUESTIONS

Recommended textbooks for you

Understanding Business

Management

ISBN:

9781259929434

Author:

William Nickels

Publisher:

McGraw-Hill Education

Management (14th Edition)

Management

ISBN:

9780134527604

Author:

Stephen P. Robbins, Mary A. Coulter

Publisher:

PEARSON

Spreadsheet Modeling & Decision Analysis: A Pract…

Management

ISBN:

9781305947412

Author:

Cliff Ragsdale

Publisher:

Cengage Learning

Understanding Business

Management

ISBN:

9781259929434

Author:

William Nickels

Publisher:

McGraw-Hill Education

Management (14th Edition)

Management

ISBN:

9780134527604

Author:

Stephen P. Robbins, Mary A. Coulter

Publisher:

PEARSON

Spreadsheet Modeling & Decision Analysis: A Pract…

Management

ISBN:

9781305947412

Author:

Cliff Ragsdale

Publisher:

Cengage Learning

Management Information Systems: Managing The Digi…

Management

ISBN:

9780135191798

Author:

Kenneth C. Laudon, Jane P. Laudon

Publisher:

PEARSON

Business Essentials (12th Edition) (What's New in…

Management

ISBN:

9780134728391

Author:

Ronald J. Ebert, Ricky W. Griffin

Publisher:

PEARSON

Fundamentals of Management (10th Edition)

Management

ISBN:

9780134237473

Author:

Stephen P. Robbins, Mary A. Coulter, David A. De Cenzo

Publisher:

PEARSON

SEE MORE TEXTBOOKS